Palm Coast Chapter 11 Bankruptcy Lawyer
Owning a business is a dream for so many people, but it is also very difficult, particularly when your company has incurred more debt than it can repay. If you are worried about your business’ debt, it is important to remember the situation is not hopeless, and it does not mean you will lose your business. Chapter 11 bankruptcy is a great option that can allow you to restructure the debt of your company, making it more manageable to repay in the future. Our Palm Coast Chapter 11 bankruptcy lawyer explains more below.
The Chapter 11 Bankruptcy Process
When filing Chapter 11 bankruptcy, you must submit your reorganization plan, which must be approved by both the court and your creditors. The plan will organize your business’ debt into classes, depending on the type of debt you are carrying.
The plan outlines how you intend to repay the debt to all of your creditors over a certain term. You can also set forth in the plan the cancellation of certain contracts, which can have a significant financial benefit for your company. You can also avoid certain payments that were made just before you filed bankruptcy, which means the money is returned to the business.
After the bankruptcy court and the majority of creditors have approved the plan, you can continue to operate your business. You must also continue to make payments according to the plan. For a limited amount of time, the bankruptcy court will oversee the company to ensure you are complying with the plan.
When to File Chapter 11 Bankruptcy
If your business is struggling with debt but you are unsure of whether Chapter 11 is the right option, there are some signs that can indicate now is the time. These include:
● Your business has been the victim of fraud or internal mismanagement and you need a way to deal with those issues
● The business’ bank account has a wage garnishment against it
● The business is receiving multiple letters from collection agencies or collection calls
● The company owns property that is currently underwater and would like to reduce or eliminate debts secured against it
● The company has had a Fair Labor Standards Act lawsuit filed against it
● A creditor is about to execute a judgment lien for a secured loan
● A creditor is about to seize collateral for a secured loan
● The business needs to acquire new financing with better terms
● There is a benefit to the business of canceling certain contracts that are currently unfavorable
If any of the above circumstances apply to your business, or you just want to learn more about your options, it is important to speak to a Palm Coast Chapter 11 bankruptcy lawyer as soon as possible.
Call Our Chapter 11 Bankruptcy Lawyer in Palm Coast Today
If you think your business is in financial trouble, our Palm Coast Chapter 11 bankruptcy lawyer at the Law Offices of Carol M. Galloway, P.A. can advise you of your legal options. Call us now at 904-694-5489 or contact us online to schedule a free review of your case.